OVERVIEW OF MONETARY POLICY
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Wouldn't it be great if there were more money to go around?
Well, maybe not. Money after all, is just paper unless it is backed by assets.
If we simply printed more money, it could lead to hyperinflation, making money
less valuable. On the other hand, without enough money in circulation,
individuals and companies would not be able to buy and sell. To keep our economy
in balance, we need to set an effective monetary policy. In this tutorial, you
will learn about the following topics related to monetary policy and the Federal
- What Is Monetary Policy?
- Who Makes Monetary Policy?
- How Monetary Policy Affects the Economy
- Effect of Monetary Policy on Fixed-Income Securities
- Effect of Monetary Policy on Stocks
- SUMMARY--MONETARY POLICY REGULATES THE ECONOMY
Let's begin this tutorial by explaining what we mean by